The price of AVAX recently broke a downtrend line, for which it might resume the bullish trend in the medium/long term. Buyers will possibly control the market since there have been constant higher lows and highs in the medium-term.
While Bitcoin attempts to resume the bullish trend, the cryptocurrency Avalanche has already risen by 45% in the last week. The following analysis will help understand the behavior of AVAX and where it might head shortly.
AVAX is currently trading at around USD 120.51 and has accumulated a gain of 22.2% in the last week. Its daily trading volume is above USD 1.08 billion, and its market capitalization is about USD 29.30 million. It occupies 11th place in the cryptocurrency ranking, just above Shiba Inu (SHIB) and Dogecoin (DOGE), according to CoinGecko.
Avalanche is a platform used for launching decentralized finance (DeFi) apps and various financial assets. AVAX is the native token of that network, and one of its functions is to serve as a reward system.
These Are the Factors Behind the Rally of the Price of AVAX
Positive catalysts have driven the price of AVAX to rise steadily, detaching itself from the broader market.
Last week, Avalanche added USDC to its protocol, which drove the price to increase by more than 10%. That started momentum that would extend much further.
After that, a report from Bank of America indicated that Avalanche was an excellent alternative to the Ethereum platform regarding the smart contracts segment.
Cryptocurrency custodian BitGo, which manages over USD 64 billion, integrated the AVAX token among its products on December 16th.
The network has grown exponentially at the same time as those news reports news develop. Some graphs show that the total number of daily active addresses is more than 120,000.
The Technical Analysis of the Price of the AVAX Cryptocurrency
The daily AVAX/USDT chart indicates that the price recently broke a downtrend line. That may be heralding the resumption of the upward trend in the medium/long term.
The bulls will control the market in the short term. The value of AVAX made a very bullish candlestick, leading to the start of new momentum. The profits should extend further in the next few hours/days, but the price should first break through the resistance at USD 120.41.
The bulls will very likely drive the price of AVAX higher in an attempt to reach a new all-time high.
The Weekly Chart of the Behavior of the Cryptocurrency AVAX
From this time frame, it is also possible to see buyers in control of the market.
Constant higher lows and highs suggest that the medium-term trend is bullish, and the price currently seems to be resuming it.
Soon, the value of AVAX will most likely see higher profits.
However, analysts recommend not to rule out the possibility that a significant correction will occur soon. However, the price must break immediate support at USD 86.35 to think that will happen.
By Alexander Salazar
